Section DD 5 — Income Tax Act 2007: Promoting businesses, goods, or services

DD 5 Promoting businesses, goods, or services Sponsored promotions (1) The limitation rule does not apply to a deduction for expenditure on entertainment if— (a) the entertainment is sponsored mainly to advertise or promote a person’s business, goods, or services to the public; and (b) none of the following has a greater opportunity to enjoy the entertainment than the public generally: (i) existing business contacts of the person or the person whose business, goods, or services are being advertised or promoted: (ii) employees of the person or the person whose business, goods, or services are being advertised or promoted: (iii) anyone associated with the person or the person whose business, goods, or services are being advertised or promoted. Incidental costs of promotion (2) The limitation rule does not apply to a deduction for expenditure on entertainment that is merely an incidental part of— (a) a trade display mainly held to advertise or promote a business, goods, or services: (b) a function open to the public and mainly held to advertise or promote a business, goods, or services. Samples (3) The limitation rule does not apply to a deduction for expenditure on samples that a person provides for promotion or advertising purposes to anyone who is not an employee of or associated with the person. Entertainment for review (4) The limitation rule does not apply to a deduction for expenditure on entertainment that a person provides to a person who is reviewing the entertainment for a book, magazine, paper, or other medium of communication. Defined in this Act: associated person , business , business contacts , deduction , employee , limitation rule , Compare: 2004 No 35 s DD 5